Stocks & Commodities V. 28:8 (43): Futures For You by Carley Garner

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Futures For You by Carley Garner

MARGIN CALLS

What do I do if I get a margin call?

Ideally, margin call avoidance is the best policy. However, even the most responsible traders will encounter the predicament sooner or later. Rather than liquidating positions or adding funds to what might become a money pit, there are unlimited ways to influence the exchange-required margin in your favor via risk reduction, or at least the perception of such. Naturally, lower risk equals lower margin and in most cases lower profit potential, but for those who find themselves in a dire margin situation, beggars canít be choosers.

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